Indexation coefficient of normative monetary evaluation of land for determining minimum tax liability for 2023

Article 38¹ of the Tax Code of Ukraine (hereinafter – Code) stipulates that normative monetary evaluation of land is used to calculate amount of land tax, taking into account indexation coefficient, determined according to procedure established by the Code for land tax payment.

Taxation base of land payment is normative monetary evaluation of land plot, taking into account indexation coefficient (Sub-paragraph 271.1.1 Paragraph 271.1 Article 271 of the Code).

Indexation coefficient of normative monetary evaluation of lands is applied cumulatively depending on the date of normative monetary evaluation of lands (Paragraph 289.2Article 289 of the Code).

Central executive body that implements state policy in sphere of land relations calculates value of indexation coefficient of the normative monetary evaluation of land on the basis of consumer price index for the previous year every year on January 1 of current year and not later than January 15 of the current year informs central executive body that implements state tax policy, land owners and land users on annual indexation of the normative monetary evaluation of land (Article 289 of the Code).

Central executive authority, which implements state policy in sphere of land relations in 2024 informed about indexation for 2023, which must be applied to calculate tax liabilities from land payment and single tax (Group IV) in 2024.

In view of above specified, it can be seen that for calculation of amount of the minimum tax liability for 2023, the normative monetary evaluation of land, which was in effect in 2023 for calculation of land payment and single tax (Group IV), is used.

For reference: for calculation of land payment and single tax (Group IV) for 2023, value of indexation coefficient of the normative monetary evaluation of land and land plots for 2022 is 1.0 for agricultural land.